This Small Business Innovation Research project aims to develop an innovative eye drop formulation for the treatment of diabetic retinopathy. The goal of this proposal is to develop substantial efficacy, safety, and pharmacokinetic data to support the clinical development of topical fenofibrate. We hypothesize that topical application of fenofibrate can reduce vision loss and neovascularization in animal models of diabetes and retinal disease. The goal of this proposal is to 1) evaluate the efficacy of topical fenofibrate on preventing visual acuity loss in a rat model of streptozotocin-induced diabetes We will give fenofibrate eye drops either two or four times a day for 16 weeks. We will measure the change of visual acuity over this time period. The long term goal (Phase 2) is to perform safety studies and find a commercial manufacturer for the formulation.